DUSHANBE, Tajikistan, April 5. The European Bank for Reconstruction and Development (EBRD) has reviewed a project providing a sovereign loan of up to 4 million euros to Tajikistan, Trend reports.
According to the bank, the purpose of this loan is to finance improvements in the critical water supply infrastructure in the city of Dangara. The loan will be complemented by investment grants of up to 4 million euros from the EBRD Shareholder Special Fund (SSF) and/or other international donors. The loan will have a maturity period of 15 years, including a four-year grace period.
The borrower for this loan is Tajikistan's Ministry of Finance, which will then pass on the funds to the Dangara Water and Wastewater Company, a wholly-owned subsidiary of the Khojagii Manziliyu Kommunali State Unitary Enterprise.
The primary aim of the project is to enhance the functioning of the company and the sector through various policy engagements. It will focus on improving water resource and energy efficiency, preventing pollution, and reducing ecosystem degradation by implementing an Integrated Water Resource Management approach to river basin servicing in Tajikistan. Ultimately, the project aims to decrease water losses and increase access to clean water for more people.
Meanwhile, the current loan portfolio of the EBRD in Tajikistan amounted to 482 million euros for 69 active projects as of January 31, 2024. As of the reporting date, the EBRD's cumulative investments in Tajikistan totaled 919 million euros, spread across 165 projects, with the private sector's share in the portfolio amounting to 13 percent.